Bitcoin is having an exceptional year, and it appears that the positive trend will continue thanks to short-term whales making $16 billion in profits, alongside the support of spot Bitcoin ETF buyers.
Following a recent price correction, Bitcoin seems to have bounced back and is now aiming to reach new highs. Currently, the leading cryptocurrency is trading well above $70,000, having even surpassed $71,500 earlier today.
When it comes to predicting where the price could go next, experienced analyst Ali Martinez has observed the formation of a strong support level and an ascending triangle on the lower timeframes. Martinez believes that Bitcoin has broken out of the triangle and that the $70,400 range will act as support.
If the support holds, Bitcoin could break above the $71,800 mark and achieve a new high in the coming days. Breaking the recent all-time high above $73,000 will open up a new phase of price discovery and validate some bullish Bitcoin price predictions.
The remarkable performance of Bitcoin this year can be attributed in large part to the inflows into spot Bitcoin ETFs in the United States. Notably, Bitcoin experienced a dip in price that coincided with five consecutive days of net outflows, the longest period of negative flow since the launch of these investment products in January.
However, this negative trend was broken on Monday when the funds saw a mild net inflow of $15.4 million. Bulls are optimistic that this improved figure will mark a turning point, putting an end to the rare negative flow period for Bitcoin ETFs.
It is important to highlight that, thanks to the contributions from spot Bitcoin ETFs, BTC short-term holder whales currently possess $16 billion in unrealized profits. Despite this, CryptoQuant’s CEO Ki Young Ju expressed confidence that the spot ETF buyers are long-term holders who may not sell their positions for a mere 16% profit.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.